This week the silver spot price has risen by almost 8%, climbing from a £13.96 per ounce to the current price of £15.10 per ounce, and peaking slightly higher at £15.29.
In Dollar terms, silver is at $18.39 – the highest it has been since April 2017. This week’s gains show a substantial rise in demand, but can it continue?
The Pound Sterling slumped this morning following an advance leak to senior journalists that Prime Minister Boris Johnson is planning to prorogue (temporarily cease) Parliament in order to force through Brexit and potentially a no-deal exit.
The price of gold hit $1,550 per ounce yesterday to achieve its highest valuation since March 2013, with pressure from the US/China trade war keeping demand for the safe haven asset high.
After a calm week for investors, this afternoon has seen a flurry of movement centred around the
US-China trade war.
President Donald Trump took to Twitter shortly after to continue his longstanding criticism of the
Fed, going so far as to question whether Powell or Chinese President Xi Jinping was the greater
enemy to the US economy.
Italy’s coalition government has broken apart, with Prime Minister Giuseppe Conte resigning yesterday afternoon and launching a blistering attack on coalition partner Matteo Salvini.
The Bundesbank – Germany’s central bank in Frankfurt – has warned that the German economy could slip into recession this autumn, with Brexit among the causes blamed.
A host of global economic uncertainties recently have seen investors turning to safe-haven assets, driving the price of gold to register several new all-time highs in Sterling.
Gold is not the only precious metal to rally however. Silver has been climbing too, and has the potential to make further gains.
Data experts at Deutsche Bank are forecasting another quarter of economic contraction in Germany, resulting in a technical recession that could last into next year.
Germany’s industrial production has been impacted by the US/China trade war, which has hit supply chains and commercial demand.
The US Federal Reserve has announced it plans to cut interest rates by 0.25%, bringing the new benchmark to between 2% and 2.25%.
Committee members voted 8-2 in favour of cutting rates at a meeting yesterday evening, with Eric Rosengren (Boston Fed president) and Esther George (Kansas City Fed president) voting against the decision.
